Mastech DigitalMHH -0.78%66 Operating Margin % is 0.12% as of Mar. 2026, which is 98% below its 10-year median of 5.04. GuruFocus rates MHH with a GF Score™ of 66/100 and a GF Value™ of $7.17 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,070 Business Services companies, Mastech Digital ranks worse than 73.55% on this metric.
Mastech Digital (AMEX:MHH) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Mastech Digital Operating Margin % Related Terms
Mastech Digital Operating Margin % Historical Data
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The historical data trend for Mastech Digital's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MHH vs BGSF, ATLN, JOB: Operating Margin % Comparison
For the Staffing & Employment Services subindustry, Mastech Digital's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Mastech Digital Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Mastech Digital's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mastech Digital's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Mastech Digital's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Mastech Digital (MHH) has a Operating Margin % of 0.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Mastech Digital and its competitors. This is 98% below median its historical median of 5.04. According to the industry distribution chart, Mastech Digital ranks #787 out of 1070 companies in the Business Services industry, placing it in the top 73.6%.
Is Mastech Digital's Operating Margin % too high?
Mastech Digital's current Operating Margin % of 0.12% is 98% below median its 10-year median of 5.04. The Business Services industry median Operating Margin % is 6.28. Mastech Digital's value of 0.12% is 98.1% below this industry median. Based on the distribution chart, Mastech Digital ranks #787 out of 1070 companies in the Business Services industry, which is below the industry midpoint. Overall, Mastech Digital has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mastech Digital's Operating Margin % compare to BGSF and ATLN?
According to the Business Services industry distribution chart, Mastech Digital ranks #787 out of 1070 companies for Operating Margin %. This places Mastech Digital in the lower half of its industry. The industry median Operating Margin % is 6.28. Mastech Digital's value of 0.12% is 98.1% below this benchmark. While the company's 10-year median is 5.04 vs. the industry median of 6.28, Mastech Digital has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.28, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Mastech Digital's current Operating Margin % of 0.12% is 98.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Mastech Digital and its competitors. For the Business Services industry, the median Operating Margin % is 6.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mastech Digital's current Operating Margin % is 0.12%, which is 98% below median its own 10-year median of 5.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mastech Digital stock overvalued right now?
Based on GuruFocus' analysis, Mastech Digital (MHH) is currently considered Fairly Valued. The stock's GF Value™ is $7.17, compared to a current price of $7.63 — trading 6.4% above its estimated fair value. The current Operating Margin % is 0.12%, which is 98% below median its 10-year median of 5.04 and 98.1% below the Business Services industry median of 6.28. Mastech Digital's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Mastech Digital (MHH), the current Operating Margin % is 0.12% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Mastech Digital (MHH) Overvalued in 2026?
Based on GuruFocus' analysis, Mastech Digital stock appears to be overvalued.
The current stock price of $7.63 is trading 6.4% above its estimated GF Value™ of $7.17.
GuruFocus considers Mastech Digital to be Fairly Valued.
Key valuation signals for MHH:
Operating Margin %: 0.12% (98% below median its 10-year median of 5.04)
GF Value™: $7.17 vs. price of $7.63 (6.4% above fair value)
Industry Position: 98.1% below the Business Services median (#787 of 1070)
No single metric tells the full story. See the MHH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mastech Digital Inc is a provider of Digital Transformation IT Services. The Company offers data & analytics solutions & IT staffing services for both digital & mainstream technologies. The Group has two segments. Its Data & Analytics Services segment delivers specialized data management, data engineering, customer experience consulting, data analytics & cloud services to customers globally. The IT Staffing Services segment combines technical expertise with business process experience to deliver a broad range of services in digital & mainstream technologies. The company derives a majority of its revenue from IT staffing services. Geographically, the majority of revenue is generated from the United States.
66GF Score
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